HOA goes to the tenant or?

Question

Hey,

The 3/2 1,200 sq fit property I want to convert to a rental property comes with a $40 monthly HOA and it includes a pool & playground and the rent is going to be $1,500. If I make the tenant pay it for cash flow for me. If I put in in the rent less cash flow for me but the rental basically taking care of itself.

Is it a turn off to potential tenants if they see they have to pay a monthly $40 HOA bill plus the rent?

Adrian Clapp · Answer

You should include it in your rent.  You will be liable if the tenant stops paying it and it could take a few months for you to receive notice that it hasn't been paid.  Thankfully it is a low HOA fee.

Jacob Bownds · Answer

While it is a Home Owner's fee - right in the name - the above suggestions are on point in most cases. May not always be able to pass on the entirety depending on how high the fees are. $40 actually sounds quite reasonable.

We recently represented a client who had a mortgage of $460 per month in an old, restored brick building downtown, virtually no services provides for that amount. Client was already highest priced in the area and then when he learned he needed to pay the HOA directly and tacked that on to the rent amount, as well, he had totally priced himself out. No bites for months at that rate.

David Peschio · Answer

You should pay the HOA directly and incorporate the cost into the monthly rent. This approach helps you avoid any potential issues with delinquency on the HOA fees, as it ensures they are always covered and paid on time.

Gustavo Delgado · Answer

HOA is on you. Just factor it in your rent..

James McGovern · Answer

Yes big turn off.

HOA goes to the tenant or?

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